Question

Find the compound interest on Rs 1,200 for 2 years at 10% per annum

• A. Rs 252
• B. Rs 225
• C. Rs 300
• D. Rs 350

Answer 1

The correct option is A Rs 252

Compound Interest $C.I=A-P$
Formula for amount when compound interest is applied : $A=P{(1+\frac{r}{100})}^n$
Given $P=1,200;n=2;r=10$
$\therefore A=1,200{(1+\frac{10}{100})}^2=1,200{\left(\frac{11}{10}\right)}^2=\frac{1,200\times 121}{100}=Rs1,452$
$CI=1,452-1,200=Rs252$